On May 6, 2021, market analyst Blue Orca Capital released a report regarding So-Young stating “Lips can be fake. Financials shouldn’t be.” The report also stated that Blue Orca’s “Data Scrape Shows Widespread Booking Fabrication on SY’s Platform[,]” and that Blue Orca “estimate[s] that SY exaggerates the bookings from these clinics by at least 4-5x during the period we monitored. We think this indicates, persuasively, that SY is inflating both the popularity of its platform and its reported revenues.” The report further stated that “[l]ike SY’s booking revenues, we think the evidence shows that SY’s advertising revenues are largely inflated[,]” due in part to Blue Orca’s “data scrapping reveal[ing] that 24% of the clinics sold zero procedures on SY’s platform in 2020[,]” and “that over 50% of the clinics listed on the platform had 50 or fewer bookings.”

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